Electric Infrastructure Electric Infrastructure WorkshopWorkshop

January 23, 2005January 23, 2005

Florida Public Utilities Florida Public Utilities CompanyCompany

Florida Public Utilities Florida Public Utilities Company DescriptionCompany Description

• Small Investor Owned Electric UtilitySmall Investor Owned Electric Utility

• Approximately 27,500 CustomersApproximately 27,500 Customers

• Small Service Territories Located On Small Service Territories Located On Amelia Island And In The Florida Amelia Island And In The Florida Panhandle (Marianna)Panhandle (Marianna)

• Limited Staffing And ResourcesLimited Staffing And Resources

Hurricane Damage During Hurricane Damage During 2004 and 2005 Hurricane 2004 and 2005 Hurricane

SeasonsSeasons• Only Severe Damage Caused By Only Severe Damage Caused By

Tornadoes Associated With Hurricane Tornadoes Associated With Hurricane IvanIvan

• Minimal Damage Sustained From Winds Minimal Damage Sustained From Winds Associated With Seven (7) Named Associated With Seven (7) Named HurricanesHurricanes

• Total Of 74 Poles (0.3% of total) Were Total Of 74 Poles (0.3% of total) Were Damaged During The HurricanesDamaged During The Hurricanes

• Total Of 3.25 Miles (0.3% of total) Of Wire Total Of 3.25 Miles (0.3% of total) Of Wire Was Replaced During the Hurricanes Was Replaced During the Hurricanes

System RestorationSystem Restoration

• Tornadoes Caused Severe Damage Tornadoes Caused Severe Damage During Hurricane IvanDuring Hurricane Ivan

• Damage From Hurricane Winds Was Damage From Hurricane Winds Was Minimal In Most CasesMinimal In Most Cases

• Inventory Was Available To Make All Inventory Was Available To Make All Repairs During Hurricane RestorationRepairs During Hurricane Restoration

• Additional Manpower And Resources Additional Manpower And Resources Were Available During All HurricanesWere Available During All Hurricanes

• Longest Customer Outage Was Five Longest Customer Outage Was Five (5) Days During Hurricane Ivan(5) Days During Hurricane Ivan

Impact Of System UpgradesImpact Of System Upgrades

• Current FPUC Rate Base Is Current FPUC Rate Base Is Approximately $37.85 MillionApproximately $37.85 Million

• Estimated Upgrade Cost Is $41 Estimated Upgrade Cost Is $41 Million Or 108% of the current rate Million Or 108% of the current rate basebase

• 2004 And 2005 Hurricane Related 2004 And 2005 Hurricane Related Damage Results Do Not Justify This Damage Results Do Not Justify This ExpenseExpense

System Studies And System Studies And ResearchResearch

• Due To Small Size And Limited Due To Small Size And Limited Resources, No Comprehensive Resources, No Comprehensive Studies Or Research Has Been Studies Or Research Has Been Conducted Conducted

ConclusionConclusion

• With The Exception of Tornadoes With The Exception of Tornadoes Associated With Hurricane Ivan, Associated With Hurricane Ivan, Minimal Damage Sustained During Minimal Damage Sustained During the 2004 and 2005 Hurricane Seasonsthe 2004 and 2005 Hurricane Seasons

• Experience And Results Indicate That Experience And Results Indicate That Preparation And Restoration Were Preparation And Restoration Were AdequateAdequate